Question

QUESTION 1 (25 marks) The following appears in the books of Monica Traders on 1 March 2015:  Office equipment 399 420  Accumulated depreciation: office equipment 180 000 During the financial year ended 28 February 2016, the following transactions pertaining to office equipment took place: • On 1 December 2015, a new coffee machine for use by office staff and personnel was bought for R31 920 cash, including VAT. • On 1 September 2015, an old computer, which had been bought on 1 December 2014 for R20 700 (including VAT), was sold for R5 750 cash (including VAT). Important additional information: • Monica traders is a registered VAT vendor. • A standard VAT rate of 15% applies. • In accordance with the VAT act, office equipment used for the purposes of staff entertainment are non-allowable items. • In accordance with the VAT act, office equipment used for business purposes are standard rated allowable items. • Monica Traders depreciates all their assets at a rate of 33 1/3% according to the reducing balance method. Required: Present the following accounts in the general ledger of Monica Traders for the year ended 28 February 2016 to your lecturer. • Office equipment (B4) • Accumulated depreciation: office equipment (B5) • Asset disposal (N16 in rand

Answer 1

Answer:

ᴘʀᴇᴄɪᴘɪᴛᴀᴛɪᴏɴ ɪꜱ ᴀɴʏ ᴘʀᴏᴅᴜᴄᴛ ᴏꜰ ᴛʜᴇ ᴄᴏɴᴅᴇɴꜱᴀᴛɪᴏɴ ᴏꜰ ᴀᴛᴍᴏꜱᴘʜᴇʀɪᴄ ᴡᴀᴛᴇʀ ᴠᴀᴘᴏᴜʀ ᴛʜᴀᴛ ꜰᴀʟʟꜱ ᴜɴᴅᴇʀ ɢʀᴀᴠɪᴛᴀᴛɪᴏɴ ᴘᴜʟʟ ꜰʀᴏᴍ ᴄʟᴏᴜᴅꜱ. ᴛʜᴇ ᴍᴀɪɴ ꜰᴏʀᴍꜱ ᴏꜰ ᴘʀᴇᴄɪᴘɪᴛᴀᴛɪᴏɴ ɪɴᴄʟᴜᴅᴇ ᴅʀɪᴢᴢʟɪɴɢ,ʀᴀɪɴ,ꜱʟᴇᴇᴛ,ꜱɴᴏᴡ,ɪᴄᴇ ᴀɴᴅ ʜᴀɪʟ.